Regional Value Content (RVC) Calculator & Guide
Learn how to calculate Regional Value Content (RVC) for USMCA qualification. Step-by-step guide with examples using Transaction Value and Net Cost methods.
What is Regional Value Content?
Regional Value Content (RVC) measures the percentage of a product's value that originates from USMCA countries (USA, Mexico, Canada).
Why RVC matters:
Meeting the RVC threshold is often the key to eliminating tariffs.
Transaction Value Method
The Transaction Value (TV) method uses the product's sale price:
Formula:
RVC = ((TV - VNM) / TV) × 100
Where:
Example:
When to use TV method:
Net Cost Method
The Net Cost (NC) method uses production costs:
Formula:
RVC = ((NC - VNM) / NC) × 100
Where:
When to use NC method:
Net Cost includes:
Net Cost excludes:
Practical RVC Calculation Example
Scenario: Electronics assembly company in Mexico
Product: Control panel (HS 8537.10)
Required RVC: 65%
Components:
| Component | Origin | Cost |
| ----------- | -------- | ------ |
| PCB | China | $150 |
| Microcontroller | USA | $80 |
| Capacitors | Japan | $20 |
| Enclosure | Mexico | $40 |
| Assembly labor | Mexico | $60 |
| Overhead | Mexico | $50 |
Transaction Value: $500
Calculation (TV Method):
Result: Product qualifies (66% > 65% threshold)
This is exactly what our platform calculates automatically.
Tips to Improve Your RVC
If you're close but not quite meeting RVC:
Small changes can push you over the threshold.
Related Industry Guides
See how these tariff rules apply to specific industries:
Frequently Asked Questions
Q: Which RVC method should I use?
You can choose either method for most products (automotive requires Net Cost). Try both and use whichever gives you the higher RVC. Our platform calculates both automatically.
Q: How do I value non-originating materials?
Use the price paid for the materials (transaction value). For related-party transactions, use the transfer price or market value.
Q: Does labor count toward regional content?
Yes! Labor performed in USMCA countries contributes to regional content. This is why assembly operations in Mexico can significantly boost RVC.